On the First Day of the Year Tan Traders Purchased

Multiple Choice

On the first day of the year Tan Traders purchased a forklift truck for $12 000 which is to be depreciated by 25% a year. At the end of the first year the adjusting entry to record depreciation is which of the following?

A) Debit depreciation of forklift $3000; credit forklift $3000
B) Debit depreciation of forklift $3000; credit accumulated depreciation of forklift $3000
C) Debit depreciation of forklift $12 000; credit accumulated depreciation of forklift $12 000
D) Debit accumulated depreciation of forklift $3000; credit depreciation of forklift $3000